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Intel stated in an update posted to its corporate site that the company has developed and is rapidly issuing updates for all types of Intel-based computer systems - including personal computers and servers - that render those systems immune from both exploits, referred to as "Spectre" and "Meltdown", reported by Google Project Zero. "Intel and its partners have made significant progress in deploying updates as both software patches and firmware updates. Intel has already issued updates for the majority of processor products introduced within the past five years. By the end of next week, Intel expects to have issued updates for more than 90% of processor products introduced within the past five years. In addition, many operating system vendors, public cloud service providers, device manufacturers and others have indicated that they have already updated their products and services. Intel continues to believe that the performance impact of these updates is highly workload-dependent and, for the average computer user, should not be significant and will be mitigated over time. While on some discrete workloads the performance impact from the software updates may initially be higher, additional post-deployment identification, testing and improvement of the software updates should mitigate that impact," the company stated. Reference Link

Morgan Stanley analyst Joseph Moore said he does not think that the potential exploit identified in Intel (INTC) processors materially changes the server opportunities for AMD (AMD). Moore notes that IT customers he's spoken with didn't rule out a 35% impact for some workloads, but said that the mainstream impact on Intel processors would be more on the order of 5%. A 5% performance impact, while significant, is not enough to drive CPU preference to AMD, according to Moore, who adds that if the 35% performance hit were correct it could drive consideration for AMD.

01/04/18

NOMU

01/04/18NO CHANGETarget $50NOMUBuy

Nomura sees minimal impact to Intel financials from design flaw

Nomura Instinet analyst Romit Shah believes the impact to Intel's financials and long-term market share from the chip design flaw will be minimal. The security threat is rooted in a technology featured in most modern-day processors, and Intel emphasized last night that the problem is not specific to its processors, Shah tells investors in a research note. The analyst keeps a Buy rating on Intel shares with a $50 price target.

01/04/18

BARD

01/04/18NO CHANGETarget $20BARDOutperform

AMD could benefit from uncovered Intel issue, says Baird

Baird analyst Tristan Gerra noted the security issues in Intel (INTC) CPUs that was disclosed yesterday and believes it could lead to market share gains for AMD (AMD) both this year and next. AMD said they sees near-zero risk due to their architectural differences and longer term it could drives security and performance refresh cycles in PCs, said Gerra, who reiterated his Outperform rating and $20 price target on AMD shares.

01/04/18

FBCO

01/04/18NO CHANGETarget $42FBCONeutral

Intel selloff an 'overreaction,' says Credit Suisse

Credit Suisse analyst John Pitzer says that while he does not find current valuation particularly compelling, the selloff related to speculation of security issues appears to have been an "overreaction." The analyst reiterates a Neutral rating and $42 price target on the shares.

Following media reports of chip-level security issues impacting systems powered by Intel (INTC) processors, Bank of American Merrill Lynch analyst Vivek Arya noted that this issue initially surfaced in November and that Intel has maintained dominant share in both servers and PCs for decades despite having faced bugs in the past. Arya maintains a Buy rating on Intel shares, but added that AMD (AMD) could be the most direct beneficiary whether this is a real or a perceived additional risk factor for Intel. If Intel's firmware upgrades slow down its processors, it could give AMD a leg up in 2018, particularly in servers, Arya added.

01/03/18

DBAB

01/03/18NO CHANGETarget $50DBABBuy

Deutsche expects quick response from Intel on Register story

The Register reported yesterday that Intel (INTC) chips from up to the past 10 years have a critical security flaw that AMD (AMD) chips do not have, Deutsche Bank analyst Ross Seymore tells investors in a research note. The analyst says that while he has no incremental insights on the accuracy of the story, he'd be surprised if such a "fundamental flaw" went unnoticed for the duration that the article is highlighting. Further, if the impact to Intel was known and material, the company would likely have disclosed it earlier, Seymore adds. He expects a response from Intel "to be forthcoming relatively quickly." The analyst has a Buy rating on the shares with a $50 price target. Intel in afternoon trading is down 5% to $44.55 while AMD is up 8% to $11.84.